Measure
The government will simplify administration of the deposit refund scheme (DRS) by removing the requirement for individual producers to account for VAT on unreturned deposits. Instead, this will be done by the Deposit Management Organisation.
Businesses that produce or sell drinks.
The DRS is due to go live on 1 October 2027.
We view this as a simplification for businesses involved in the DRS. Centralising the VAT accounting for unreturned deposits with the Deposit Management Organisation should reduce the administrative burden on individual producers and sellers as they prepare for the 1 October 2027 launch.